A company that uses the perpetual inventory method purchases inventory for $2,000 from a vendor on account,FOB shipping point,with terms of 2/10,n/30.The company paid the shipper $100 cash for freight in.
-The company paid the vendor 9 days after the sale.Assuming this was the only transaction affecting inventory,and that there was no beginning balance,what would the cost basis of the inventory be?
A) $1,960
B) $2,000
C) $2,060
D) $2,100

Question

Quizplus · Accepted Answer

C) Calculations: $2,000 + $100 - $40 = $2,060

A Company That Uses the Perpetual Inventory Method Purchases Inventory